Payment scuffles between Russian companies and Chinese banks have escalated in recent weeks, with Chinese firms pulling back amid fear of sanctions.
  • Russia’s yuan reserves are nearly depleted due to Chinese banks’ fear of US sanctions.
  • Lenders have urged Russia’s central bank to address the yuan deficit, causing the ruble to drop.
  • China’s hesitance stems from US threats of secondary sanctions over Russia’s Ukraine war financing.
  • @TrueStoryBobEnglish
    3•10 days ago

    Well, they can, but the cost will get more volatile… super oversimplified, it’s the difference between drinking at home booze you bought at wholesale prices and keeping a running tab with a local bar/pub. You’ll be subject to the bar and any price changes they (read: the currency markets) want to make.

    • @finitebanjoEnglish
      1•9 days ago

      Theres no such thing as bartering between nations, in order to buy from them requires first selling something or having a creditor.

      I’m assuming they have nothing more to sell so they’ll just lose important wartime supplies and general goods access.